Northgate warns of further cost-cutting
DARLINGTON vehicle rental firm Northgate has warned of further cost-cutting measures in “uncertain” economic conditions as it reported an improvement in fleet hire rates.
In the UK, the firm achieved an average utilisation rate of 91% during the four months to 28 February - a 5% improvement on the same period the previous year. In Spain, where economic conditions have been even more severe, the rate climbed by 6% to 86%.
The UK improvement was partly down to a reduction in fleet volumes, from 61,000 to 60,000, and a 3% increase in hire prices.
Northgate indicated that further price hikes could be in the offing with the economic outlook remaining “uncertain” in the UK and “very difficult” in Spain.
The firm, is predicting net debt to fall below £650m by the end of April - which would be a reduction of more than £236m on the previous year.
